Credicorp .(US:BAP)2025-08-18 17:11Financial Performance - Net income attributable to Credicorp increased 36.1% YoY and 2.5% QoQ to S/1,822.0 million, resulting in a record ROE of 20.7%[7] - BCP's net profit for 2Q25 reached S/ 1,864,498, reflecting a 36.4% year-over-year increase[50] - Operating income grew by 7.5% year-over-year, reaching S/ 5,529,301 in 2Q25[50] - Total Income for Credicorp reached S/282.4 million in 2Q25, up 20.4% from 1Q25 and 107.4% from 2Q24[65] - The company revised its 2025 ROE guidance to approximately 19.0%, driven by retail loan growth and a resilient NIM[49] Loan and Deposit Trends - Total loans declined 0.3% YoY but increased 2.6% FX Neutral, with a QoQ rise of 1.2% driven by Retail Banking and Mibanco[7] - Total deposits rose 6.2% YoY (+10.2% FX Neutral) but contracted 0.5% QoQ, with low-cost deposits accounting for 71.8% of total deposits[7] - Total loans at BCP Stand-alone decreased by 0.2% QoQ and 4.1% YoY, with quarter-end balances at S/ 120,999 million as of Jun 25[89] - Total loan balance for micro and small businesses at Mibanco Peru reached S/ 11,356 million in 1Q24, with a slight increase to S/ 11,894 million projected for 1Q25[79] - Total loans increased to S/ 93,110 million, reflecting a 1.6% QoQ and 0.5% YoY growth, with a notable decline in foreign currency loans by 11.8% YoY[97] Asset Quality and Risk Management - Non-Performing Loan (NPL) ratio improved 102 bps YoY to 5.0%, with provisions declining 47.4% YoY due to better payment behavior and risk management[7] - Provision for credit losses decreased by 47.4% year-over-year, amounting to S/ (575,159) in 2Q25[50] - The coverage ratio of NPLs increased to 109.5%, reflecting a 1450 basis points improvement year-over-year[50] - Write-offs decreased by 18.9% QoQ and 41.5% YoY, indicating improved loan performance[159] - The NPL ratio at Credicorp fell 102 bps YoY to 5.0%, with BCP Stand-alone experiencing a drop of 117 bps across all segments except Mortgage[167] Revenue Sources and Innovations - Yape reached 14.9 million Monthly Active Users (MAU), contributing 5.5% to Credicorp's total risk-adjusted revenue[7] - In 2Q25, Credicorp's innovation portfolio represented 6.2% of its risk-adjusted income, up from 5.4% in 1Q25 and 3.4% in 2Q24, indicating progress in diversifying revenue sources[56] - Total Payment Volume (TPV) for Yape increased to S/103.4 billion in 2Q25, a 12.9% quarter-over-quarter growth and a 66.3% year-over-year increase[62] - The Financial business generated 44% of Yape's revenue in 2Q25, with the loan business increasing its share from 4% in 2Q24 to 18% in 2Q25[75] - Total Net Fee Income increased to S/ 1,024,553, reflecting a QoQ growth of 3.1% and a YoY growth of 8.2%[195] Operating Expenses and Efficiency - Operating expenses increased 11.4% YoY, leading to an Efficiency Ratio of 44.9% for 1H25, in line with full-year guidance[7] - Total expenses rose by 9.8% year-over-year, totaling S/ (2,630,310) in 2Q25[50] - Credicorp's total operating expenses were S/196.6 million in 2Q25, a 9.7% increase from 1Q25 and a 40.9% increase from 2Q24[65] Capital Adequacy - Credicorp's CET 1 Ratio stood at 12.56% for BCP Stand-alone and 16.73% for Mibanco, indicating strong capital adequacy[7] - The NPL Coverage ratio at Credicorp increased by 1,449 bps YoY to 109.5%, indicating improved loan loss coverage[184] Market Position and Share - BCP's market share of total deposits in Peru was 32.1%, with a year-over-year growth in low-cost deposits of 6.5%[123][124] - Time deposits at BCP grew by 10.0% YoY, contributing to an increase in market share to 19.4%[124]